Abstract

Feedback represents an important source of learning for entrepreneurs and entrepreneurial teams (Haynie, et al., 2010). However, people often do not benefit from feedback (Audia & Locke, 2003), in particular when it provokes negative affect (Baron, 1993). Therefore, it is crucial to understand how team members affectively react to feedback in an entrepreneurial setting because this helps understand why some teams are better able to benefit from feedback than others.

While negative affective reactions to negative feedback have already been demonstrated (Mendolia & Baker, 2008), it is unclear how feedback impacts positive affect. More importantly, it is unclear if there are any moderators in these relationships. For example, team members’ ability to monitor their thoughts (Haynie & Shepherd, 2009) will likely increase negative and decrease positive affect because monitoring is connected to rumination and worry (Spada, et al., 2008). Further, we hypothesize that the satisfaction with the team will decrease affective reactions because it buffers team’s external experiences (Audia & Locke, 2003). Third, we analyze the moderating impact of task uncertainty – a frequent context for entrepreneurial decision makers (McMullen & Shepherd, 2006) – on these two-way interactions.

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